xxxvi Preface to the fifth edition
now made it possible to target individual customers with pinpoint accuracy, leading to more
personalized and often one-to-one communications (see Chapter 22 for more on this).
The chapter has been extensively revised to take account of these developments. In addition to
reviewing the more traditional methods for segmentation and targeting based upon demographics,
psychographics and geodemographics, Evans explores the fusion of personalized data which
permits biographical segmentation. Of particular value is consideration of the differences between
segmenting a ‘cold’ market from scratch and the application of the new methodologies to current
customer databases.
The use of segmentation data in the development of customer relationship management (CRM)
and relationship marketing is explored and should be considered in association with Chapters 3
and 19, which deal with these topics in greater detail.
Peter Doyle has completely rewritten his chapter (11) on ‘Managing the marketing mix’ to
show how the adoption of value-based approaches to management may transform what
traditionally has been a craft-based activity into a professional practice. In the past, marketing has
lacked influence in the boardroom due to its inability to justify its contribution to the overall success
of an organization – a failing epitomized by Lord Leverhume’s comment that ‘I know half my
advertising expenditure is wasted, the problem is I don’t know which half’. In a rigorous,
analytical, clinical but easily accessible way, Doyle explains how the concept of shareholder value
and the application of financial analysis techniques can be used to manage each of the elements of
the marketing mix effectively.
As he states in his summary: ‘Finally, shareholder value provides the vehicle for the marketing
professional to have an increasing impact in the boardroom. In the past, senior managers have often
discounted the recommendations of their marketing teams because the marketing mix and
strategies for investment have lacked a rational goal. Marketers have not had the framework for
translating marketing strategies into what counts for today’s top executives – maximizing
shareholder value. Value-based provides the tools for optimizing the marketing mix.’
This is a tour de forcefrom one of the UK’s leading marketing academics and consultants that
will undoubtedly encourage many readers to access the extended treatment to be found in his
widely acclaimed book Value-based Marketing: Marketing Strategies for Corporate Growth and
Shareholder Value(Wiley, 2000).
While the subject of branding has appeared in every edition of the Marketing Book, Chapter 15
is completely new as a result of a change in authorship. For this edition Leslie de Chernatony has
taken over from Peter Doyle. Leslie is the author of a number of best-selling texts on branding, and
was an obvious choice to provide a comprehensive overview of current thinking and practice on the
subject.
In markets distinguished by hypercompetition it is becoming increasingly difficult to sustain
a competitive advantage through product differentiation. As a consequence, marketing commu-
nications have assumed an even more important role in enabling sellers to position themselves
effectively against competitors. To meet this challenge more traditional approaches emphasizing a
particular communication approach and techniques have given way to a more strategic method in
which a variety of communication disciplines are coordinated into an integrated procedure. This is
identified as integrated marketing communications (IMC) and is the subject of an entirely new
Chapter 16 by Tony Yeshin – an expert in the field.
As Yeshin points out: ‘If all other things are equal – or at least more or less so – then it is what
people think, feel and believe about a product and its competitors which will be important. Since
products in many areas will achieve parity or comparability in purely functional terms, it will be
the perceptual differences which consumers will use to discriminate between rival brands. Only